The Internal Factor Evaluation (IFE) Matrix Homework Help

Internal factor evaluation matrix or IFE is one of the most popular strategic management tools that is used for both evaluating as well as auditing the internal strengths and weaknesses of an organization. It also provides a basis with the help of which you will find out relationship between different areas.

It is important for strategic business unit or autonomous divisions of all multi divisional companies to construct an IFE matrix. These different matrixes can then be combined in order to bring about an IFE matrix for the entire organization.

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How to prepare internal factor evaluation matrix?

In order to conduct a proper internal strategic management audit in a particular organization it is first important to construct internal factor evaluation matrix. This tool helps in properly analyzing both strengths as well as the weakness of the functional areas of an organization. It also provides a basic ground that helps in properly evaluating relationship between the functional areas. In order to properly develop IFE it is important to have proper intuitive judgments.

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Steps to develop Internal factor evaluation matrix

You have to first identify both strengths as well as weaknesses of a particular company and then try to assign a proper weight to it. This weight may vary between 0 and 1.0.

Try to add up all the factors and then assign a rating between 1 and 4 to each of these factors.

Find out current strategies of the organization and then try finding out its relationship to the factors. You need to multiply weight of each of these factors with their rating.

Get weighed score by adding weighed scores of all factors

Determine weighed score of the organization. The highest score is 4 whereas lowest is 1. Average weighed score is 2.5.

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